The Manufacturers Association of Nigeria (MAN) has called on the federal government to commence the implementation of the Nigeria First Policy to boost local patronage and provide incentives for investment in backwards integration and local sourcing of raw materials.
MAN disclosed this in a statement, saying that this will reduce the pressure on the dollar to the barest minimum.
Commenting on the report of the Monetary Policy Committee (MPC) held recently, MAN acknowledged their efforts to stabilise the monetary parameters with the view to addressing inflationary pressure, but however, stated that maintaining the current rate is not sufficient to address the inflationary pressure and to reposition the economy on the path of growth.
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“It is necessary to consider a rate cut to reduce the cost of borrowing and attract investment in the real sector, and also support their development, especially the manufacturing and agricultural sectors, to aid the effectiveness of stabilisation policy,” MAN stated.
The association also urged the Central Bank of Nigeria (CBN) to consider a reduction of interest rate subsequently to reduce inflation and synergies with the fiscal authority to provide supportive measures that will reposition the manufacturing sector.
The MPC maintained the Monetary Policy Rate (MPR) at 27.5 percent, with MAN noting that the persistent increase in the rate over the years has impacted the sector negatively.
“The same 27.50 percent MPR rate adopted months ago surged the cost of borrowing, as the average lending rate to manufacturers stood at more than 35 percent as of January 2025.
“The rate also had trickle-down effects on production cost, impacting prices of finished products, capacity utilisation, inventory of unsold goods, and competitiveness negatively,” MAN said.
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They noted that in 2024 alone, capacity utilisation stood at 57 percent, inventory of unsold goods rose to N2.14 trillion from N1.1 trillion recorded in 2023.
“These impact points combined to create uncertainty, disrupt production and investment plans,” MAN said.
The association further called on the federal government to intensify the ongoing efforts at tackling insecurity in farming communities to boost agricultural production and transport logistics, thereby reducing food inflation and introducing measures that will improve the redistribution of income, increase the welfare of the citizens, and performance of the economy.
